No longer are we unfamiliar with the world of vessel rentals. The evolution of the transportation industry has also supported vessel leasing. The service can be thought of as something that aids human activity, particularly in the areas of logistics, product distribution, and so on. However, the emergence of the Covid-19 pandemic in the first quarter of 2020 disrupted and chaotic practically all aspects of life. This is also undeniable by lay up vessel service Malaysia. Many boat charter companies have been rendered virtually immobile due to the Covid-19 outbreak.
What exactly is Lay Up Vessel Service?
Technically, it refers to a ship that has been temporarily decommissioned from employment or service for formerly profitable activities. The concept of lay-up arose in order to lower the company’s overhead expenditures. Including engine maintenance costs, engine wear costs, charges for maintaining the ship or keeping the ship in fit condition, and the demand for fuel.
Another cost for laying up the ship is the cost of ship insurance during that unfavorable period.
What factors should you examine before laying up a vessel?
Before making a lay-up decision, we must examine the following factors:
- At the time, the cargo market situation was determined by the type of ship and the projected period for the ship to be laid up.
- How much is the actual savings in operating costs each day when compared to the ship’s production capacity, cargo market circumstances, and ship reactivation costs?
- The remaining productive life of the vessel to operate and the vessel’s value.
These criteria can help the owner not only make lay-up decisions, but also determine the extent to which the vessel should be laid up.
Types of Lay Up in Vessel World
- Hot Lay Up
This form of lay-off is normally for a short length of time, usually less than a year. As a result, crewing can be maintained or significantly decreased, subject to government approval, while the engine remains operational, including the systems in other ships that must be properly maintained.
The owner reaps the benefits of hot lay-up quickly and cheaply. However, this form of lay-up usually does not significantly reduce daily running costs.
- Cold Lay Up
This type of layoff typically lasts 12 months to several years. The ship is in a cold lay-up state, with the engine and other systems turned off. Only a generator is required to give electricity to the ship’s equipment.
Crewing can be reduced to a “skeleton crew” or replaced by contracted lay-up personnel that operate according to guard duty hours, protecting against potential fires and leaks and maintaining the ship’s engine and hull. Although cold lay-up can greatly lower operating expenses, there must be more effort and risk, particularly when the ship is reactivated.
Problems That Occur When Laying Up
Vessels that have been stopped or docked for an extended period of time pose a significant risk to the company. Because sea water differs from freshwater, the following are some of the effects of lay up:
- Corrosion of pipelines and valves caused by moisture and a lack of lubrication.
- Restart the main engine, which is not working due to a lack of lubricating oil.
- Regulators, electronics, and other control devices fail and are damaged.
- Current market conditions and estimated lay-up time
- Damage to the tank’s bunker, which solidifies if left neglected for an extended period of time.